DoD Spends $77.4M on Glass Wave Systems Without Competition, Raising Oversight Concerns

Contract Overview

Contract Amount: $77,406,116 ($77.4M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2014-03-27

Contract Duration: 545 days

Daily Burn Rate: $142.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: GLASS WAVE SYSTEMS AND OPERATIONAL SUSTAINMENT

Place of Performance

Location: SANFORD, SEMINOLE County, FLORIDA, 32771

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $77.4 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: GLASS WAVE SYSTEMS AND OPERATIONAL SUSTAINMENT Key points: 1. Significant spending of $77.4M on specialized communication equipment. 2. Lack of competition suggests potential for inflated costs and limited innovation. 3. Contract awarded to undisclosed domestic awardees, hindering transparency. 4. Long contract duration of 545 days for a non-competed award.

Value Assessment

Rating: questionable

The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value for money. Without benchmarks or competitive bids, it's hard to determine if $77.4M is a fair price for the 'GLASS WAVE SYSTEMS AND OPERATIONAL SUSTAINMENT'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was 'NOT COMPETED', indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The absence of competition likely resulted in higher costs than a fully competed contract, impacting taxpayer funds negatively.

Public Impact

Taxpayers may have overpaid due to the lack of competitive bidding. Limited public information on the specific 'GLASS WAVE SYSTEMS' and their operational sustainment. Potential for reduced technological advancement if market competition was stifled.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Undisclosed awardees
Cost-plus contract type
High dollar value

Positive Signals

Domestic awardees

Sector Analysis

The Department of Defense frequently procures specialized communication equipment. Spending benchmarks for similar 'Other Communications Equipment Manufacturing' (NAICS 334290) can vary widely based on technology and scale, but non-competed contracts often exceed market rates.

Small Business Impact

The data indicates the awardees were undisclosed domestic entities, and it does not specify if small businesses were involved or benefited from this contract. The lack of competition generally limits opportunities for small businesses to enter the market.

Oversight & Accountability

The 'NOT COMPETED' status and undisclosed awardees raise significant oversight questions. The Defense Contract Management Agency's role in overseeing this contract needs further scrutiny to ensure proper cost controls and performance, especially given the lack of transparency.

Related Government Programs

Other Communications Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Undisclosed awardees
Cost-plus contract type
Potential for cost overruns
Limited transparency
No small business set-aside indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $77.4 million to DOMESTIC AWARDEES (UNDISCLOSED). GLASS WAVE SYSTEMS AND OPERATIONAL SUSTAINMENT

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $77.4 million.

What is the period of performance?

Start: 2012-09-28. End: 2014-03-27.

What specific capabilities do the 'GLASS WAVE SYSTEMS' provide, and why were they deemed essential enough to bypass competitive bidding?

The specific capabilities of the 'GLASS WAVE SYSTEMS' are not detailed in the provided data. However, the 'operational sustainment' aspect suggests ongoing support and maintenance for critical communication infrastructure. The decision to not compete likely stemmed from a belief that only a specific vendor possessed the unique technology, expertise, or existing infrastructure necessary to fulfill the requirement, potentially for national security reasons or to avoid interoperability issues with existing systems.

How can the Department of Defense ensure fair pricing and prevent cost overruns on non-competed contracts like this one?

Ensuring fair pricing on non-competed contracts requires robust oversight mechanisms. This includes rigorous cost analysis, independent government cost estimates, and detailed audits of contractor expenditures. Transparency in the justification for sole-sourcing, along with clear performance metrics and incentive structures within the contract, can also help mitigate risks. Regular reviews and benchmarking against similar, albeit potentially different, technologies can provide some level of cost validation.

What is the long-term strategic implication of awarding significant contracts without competition in the defense sector?

Awarding significant contracts without competition can stifle innovation and lead to technological stagnation within the defense sector. It reduces the incentive for companies to invest in R&D if they are guaranteed business. Furthermore, it can create vendor lock-in, making future transitions to new technologies more difficult and expensive. Over time, this practice can lead to a less agile and potentially less cost-effective defense industrial base, ultimately impacting national security readiness.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,859,976

Exercised Options: $77,859,976

Current Obligation: $77,406,116

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline